The Saudis and Russians have declared war against US shale energy companies. It seems they weren't happy with American energy independence. Storage full..largest glut in history..Saudis are sending us a 50 million barrel oil bomb. How negative will June crude go? #Oil #USOIL https://t.co/oiNfkI2pfM— 😷Kyle Bass😷 (@Jkylebass) April 22, 2020
Zero Hedge: Kyle Bass: "The Saudis Are Sending Us A 50 Million Barrel Oil Bomb"
By now even the 165,727 "professional investors" who are long the USO ETF on the free, glitch-prone platform Robin Hood, are aware that the problem facing global oil production is that there is simply no storage where to put all the physical oil (as we warned in late March).
And if even the army of Robinhood-ers now know how impossible it is to find space for physical oil on the continental US, then Saudi Arabia - which sparked the current crude crisis and which will not stop until shale is completely crushed - is certainly aware.
Which is why with the US unable to store its own output, some 50 million barrels of Saudi oil are on their way to the United States and due to arrive in the coming weeks, piling even more pressure on markets already struggling to absorb a glut of stocks, Reuters and MarineTraffic reported.
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WNU Editor: It is beyond me on who in the U.S. will accept this oil delivery. Especially since all the oil storage tanks are full. But some are acknowledging the impact it may have on oil prices .... Oil could hit negative $100 per barrel next month, according to one analyst (Market Insider). Not surprising, the White House is weighing in .... Trump considers block on crude oil imports to prop up US market (The Guardian). The ball is now in Saudi Arabia's court .... Facing backlash, Saudis could reroute oil tankers headed for US (Al Jazeera). My prediction. Saudi Arabia is desperate to dump their oil on everyone right now, and they are not concerned on the consequences of their actions. They should, because the U.S. is going to block this shipment.
